Scotiabank is conceding that it plans to lay off a number of staffers in the coming months, amid its ongoing rationalisation of its branch network and its digital transformation programme.

Scotiabank President and Chief Executive Officer David Noel made the disclosure, as he spoke with business journalists yesterday at the bank’s quarterly news briefing on its fourth quarter performance. Noel was asked by The Caribbean Business Report about the likely staff cuts from its branch rationalisation initiative, where it will close two branches and convert six others to a digital operating model due to changes in consumer behaviour as well as its digital transformation initiative to offer more of its in-branch services on the digital space.

The Black River branch is slated for closure in February 2021 and the Old Harbour location in April 2021. Additionally, another six Scotiabank branches will be converted to the bank’s digital operating model by January 2021. These are Christiana, Falmouth, Portmore, Port Antonio, Port Maria and St Ann’s Bay.

NOEL GIVES GUARDED RESPONSE

When the question of the likely staff cut was raised, the Scotiabank boss was very guarded in his response but eventually conceded that there will be staff cuts coming. However, Noel said he would not be able to give any numbers, pointing to the fact that the bank is currently in discussion with the union representing workers (Bustamante Industrial Trade Union) about the number of staffers to be let go and those to be transitioned to other areas within the banking group.

The Scotiabank president and CEO was drawn into admitting that both the rationalisation of its branch network and its digital transformation programme “will have an impact on staff but our main aim is not to lay off staff but to reposition them into other areas of the bank”. He was also asked about the savings to be accrued from a retrenchment exercise, admitting that there will be some savings but this can only be determined at the end of negotiations with the union.

Noel was quick to point out that while there will be savings from this exercise, at the same time the bank has been investing in other areas of the operations to bring about an efficient branch structure.

Vice-president with responsibility Retail Banking, Audrey Tugwell-Henry, who will take over from Noel on January 1 of next year, added her voice to the issue of the impending staff retrenchment.

She contended that reorganisation of the branch network is more than about laying off staff but seeks to deepen relations with customers. “We will be adding value to customers and improving the customer experience,” Tugwell–Henry remarked.

In its four quarter performance Scotiabank reported a reduction in salaries and staff benefits costs of $519 million (due to continued expense management initiatives despite restructuring provisions recorded).